262 II OF THE CODE GENERALE DES IMPOTS AND CONFORMS TO THE FOLLOWING CRITERIA

– IS COMMERCIALLY REGISTERED

– HAS A FULL TIME CREW

– ENGAGES IN COMMERCIAL ACTIVITY

– IS GREATER THAN 15 METERS LENGHTH OVERALL

– LEAVES FRENCH TERRITORIAL WATERS IN AT LEAST 70% OF ITS VOYAGES DURING THE YEAR

NON COMPLIANCE WITH ONE OR MORE OF THE ABOVE CONDITIONS RESULTING IN A CHANGE IN TREATMENT OF THE VESSEL UNDER SECTION 2° /III OF ARTICLE 257 OF THE CGI WILL CAUSE THE BENEFICIARY TO BE LIABLE FOR THE VAT CONCERNED.